The pre-pack sale of AE Chilled in August, driven by the insolvency of its major customer UK Salads, has been disclosed to cost £100,000.
- Following the collapse of UK Salads in February, AE Chilled faced significant financial challenges, impacting its profit margins.
- Administrative efforts revealed AE Chilled’s European operations were hindered by trade tax regulations, leading to decreased revenue.
- A marketing campaign attracted initial interest from potential buyers, leading to competitive bidding between Hendrick European and the eventual purchaser.
- The acquisition by Big Transport Kent, sharing directors with AE Chilled, was completed for £100,000, preserving 62 jobs.
AE Chilled’s financial difficulties began in earnest following the collapse of its key customer, UK Salads, in February 2024. This significant event affected the profit margins of what was once a burgeoning temperature-controlled distribution firm. The firm had expanded considerably, increasing its fleet size to meet growing demand, but found itself vulnerable when its primary revenue source vanished unexpectedly.
In an official report addressed to creditors, Begbies Traynor, the administrator, highlighted that the European operations of AE Chilled became economically untenable. This was attributed to onerous tax restrictions on trade that severely limited revenue generation, putting additional financial strain on the company. These complications prompted the decision to seek a buyer through a comprehensive marketing campaign.
The marketing efforts successfully garnered three initial expressions of interest. However, after more thorough negotiations, only two substantial bids materialised—from Hendrick European and the firm that ultimately secured the purchase. The discussion process was rigorous, reflecting the serious interest and the strategic importance the acquisition bore for the involved parties.
Big Transport Kent, which shares directorial links with AE Chilled, emerged as the successful bidder, acquiring the company for £100,000. This sum encompassed the company’s goodwill, valued at £79,000, alongside plant and machinery valued at £19,800 and stock worth £1,000. The consideration was fully paid upon completion of the sale, marking a swift resolution to the administrative proceedings.
Significantly, the acquisition ensured the preservation of all 62 jobs within the company, a notable outcome given the otherwise precarious context of the sale. This preservation of employment highlights the importance placed on maintaining operational continuity and safeguarding livelihoods amidst the restructuring.
The AE Chilled sale not only resolved its immediate financial distress but also secured continued employment for its workforce.
